New Century Energy Corp. Announces Conversion of $400,000 of Debt into Equity.

HOUSTON -- New Century Energy Corp., (OTCBB:NCEY), an oil and gas exploration company, is pleased to announce that it has reached an agreement to convert $400,000 of debt into NCEY common stock.

Under the terms of the agreement, Blackcap Diamond Fidelity LP LLLP forgave a promissory note for $400,000 in exchange for the issuance of 856,000 restricted shares of the Company's common stock. As part of the debt-to-equity conversion, the Company entered into a Registration Rights Agreement which gives the previous note holders the right to have the restricted shares included in any registration statement the Company may file in the future.

"We are very pleased to have completed this transaction," commented President and Chief Executive Officer, Edward R. DeStefano. Mr. DeStefano further stated, "With the conversion of a major portion of our outstanding debt into equity, New Century Energy is in a stronger financial position to execute its business plan. This conversion will strengthen New Century's balance sheet enhancing the Company's ability to raise capital on attractive terms and may ultimately help us qualify for a listing on a national exchange."

About New Century Energy Corp

New Century Energy Corp, headquartered in Houston, TX, is an oil and gas exploration company. The Company's current holdings consist of over 4,000 acres throughout the State of Texas including both large natural gas producing fields such as South Sargent in Matagorda County and acreage within the San Miguel Creek oil fields in McMullen County, Texas. Through efficient field operations and the use of 3-D seismic technology, the Company has experienced success in operating mature properties at a low cost. New Century plans to grow by continuing to acquire oil and gas producing properties, profit from drilling activities, prospect development, and by engaging in joint ventures that lead to a profitable project and prospect base.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: The statements in this release relating to future product availability and positive direction are forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Some or all of the aspects anticipated by these forward-looking statements may not, in fact, occur. Factors that could cause or contribute to such differences include, but are not limited to, contractual difficulties, the future market price of NCEY common stock and the Company's ability to obtain necessary future financing.